Penalty of up to Rs1 crore for listed firms for non-compliance of norms: Sebi
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The Securities and Exchange Board of India (Sebi) on Thursday asked stock exchanges to impose a fine of Rs20,000 per day on any company that delays the completion of its bonus issue.
If a company does not allot shares resulting out of conversion of convertible securities within 18 months, a similar penalty will be imposed. Also, the penalty will be the same if a company does not approach the exchange for listing of equity shares within 20 days from the date of their allotment to shareholders.
If a company continues to be non-compliant on any of the three areas for more than 15 days, it will attract an additional fine of 0.01 % of paid-up capital of the entity or Rs1 crore, whichever is less.
The money from the fine will be credited to the stock exchange’s investor protection fund, Sebi said.